Post on 29-Nov-2014
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© 2011 Technology Multipliers, LLC
Kerim Tumay
Managing Director
October 2011
© 2011 Technology Multipliers, LLC
Outline
• What is PPM?
• Why PPM?
• Benefits & Business value
• What makes it a challenge?
PPM Concept
• Standard PPM Process
• Collaboration
• Governance Visibility
• Advanced PPM With Predictive Analytics
PPM Process
• Software Evaluation Considerations
• Software Providers and Tools PPM Technologies
• Key Success Factors Success Factors
© 2011 Technology Multipliers, LLC
What is Project Portfolio Management?
Methods and tools used by organizations to
• Obtain an accurate view of resource
utilization and project timelines
• Analyze the project and portfolio trade-
offs, performance, value, and risks
• Select and prioritize the right projects
… in order to best achieve the organization's
goals while honoring constraints.
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Why PPM? - Portfolio Mix
Projects Stage 1 Stage 2 Stage 3 Stage 4 Commercial
Lifecycle Products
Should we cancel this
project?
Should we accelerate
this project?
PPM Concept PPM Process PPM
Technologies
Success Factors
Should we suspend this one?
New Products
How will this potential project
affect us?
© 2011 Technology Multipliers, LLC
Why PPM? – Resource Capacity
Resources Capacity Cost
Clinical Development
Clinical Operations
Clinical Pharmacology
Drug Safety
Toxicology
Metabolism
Pharmacokinetic
Pharmacodynamic
Are we overstaffed?
Do we have enough
resources?
Do we have the resources
allocated properly?
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
How Does Your Company Make Project Portfolio Decisions?
Trust Collaboration
Systems Thinking Evidence-Based
Collective Ambition
Politics Power-Based
Experienced
Leadership Intuition Opinion-Based
Cultural Drivers
Inputs to Decisions Portfolio Decisions
a) b) c)
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Benefits & Business Value
Increases pipeline productivity
Accelerates new product launch
Creates competitive advantage
Enables profitable growth
Saves money
Adds value
Adds transparency
Improves governance
Specific to NPD and PLM General
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
6 Reasons Why PPM is a Challenge for NPD
1. Unpredictable project demand
2. Increasing project complexity and risk
3. Competition for resources
4. Variable activity durations
5. Uncertainty of project success outcomes
6. Loose stage-gate processes
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Forecasting Confidence
• 84% of respondents were
“somewhat” or “not
confident” when looking at 3-
year project plans
• 81% of respondents were
“somewhat” or “not
confident” in their 3-year
resource capacity forecasts
9%
35% 56%
PPM Efficiency
Highly Optimized
Somewhat Optimized
Not Optimized
Reference: “Trends in Portfolio Management”, Insight Pharma Report, 4th Annual Portfolio Management Conference, November 2009
PPM Inefficiency and Forecasting Confidence
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Standard PPM Process – Top-down, Bottom-up Approach
PPM Concept PPM Process PPM
Technologies
Success Factors
Vision & Business Strategy
Project Portfolio Management
Project & Program Management
1. Define goals, demand, resource supply, constraints
3. Define projects, scope, Plan & Schedule resources
2. Select/Prioritize projects, Define Stages & Gates
4. Track resources, activities, schedules, Update progress
5. Analyze portfolio trade-offs , Stage-Gate reviews
6. Review trade-offs, Align portfolio with strategy
Strategic
Tactical
Execution
Top-down Bottom-up
© 2011 Technology Multipliers, LLC
How is PPM Different than Project Management?
Portfolio Management Project Management
Focus Strategic Tactical/Execution
Scope Portfolio of projects Individual projects
Planning Window 1-12 years 1-12 months
Users Executives, PMO, Product Mgt
Project/Program Managers
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Advanced PPM With Predictive Analytics
• Variability in activity durations
• Resource constraints & dynamics
• Probability of project success
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Portfolio & Resource Planning With Predictive Analytics
• Simulate/Analyze multiple scenarios – play ‘what ifs’ with project priorities, resource
constrains, project attrition, add/remove projects in a matter of a few minutes
– Automatically create multiple optimal portfolio scenarios
– Compare project, resource, and financial reports
• Key benefits: – Improved PPM efficiency
– Increased confidence in forecast
Resource Supply vs. Demand
Timeline Comparison
Risk Range for Finish Dates
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
PPM Software Evaluation Considerations
• Offered as
– On-premise
– Hosted
– SaaS
• Deployment Timeframe
– 2-8 weeks
– 3-12 months
• Implementation Approach
– Stand-alone
– Coupled with an execution-level PM or PLM software
• Total Cost of Ownership
– Under $100K
– Over $100K
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
PPM Software Providers and Tools
Company/Product Offered as Focused on
Daptiv SaaS Tactical/Strategic – Portfolio Mgt
Microsoft - Project Server 2010 On-premise Execution/Tactical - Project Mgt
Instantis - Enterprise Track SaaS Tactical/Strategic – Portfolio Mgt
PD-Track Hosted Tactical/Strategic – Portfolio Mgt
Planisware On-premise Tactical/Strategic – Portfolio Mgt
Planview Enterprise On-premise Tactical/Strategic – Portfolio Mgt
PowerSteering SaaS Tactical/Strategic – Portfolio Mgt
ProModel - EPS SaaS Strategic – Portfolio/Resource Planning
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Keys to Success with PPM
• Don’t … – start without total buy-in from executives,
– be afraid to start with less than perfect information,
– overwhelm the organization with ‘heavy process’.
• Do … – adopt a portfolio mindset and evidence-based decision making,
– use the “top-down and bottom-up” process that promotes collaboration, visibility, and productivity,
– capture risk and uncertainty with predictive analytics,
– KISS! Start with a stand-alone implementation and SaaS software. Make it work in a short timeframe. Then integrate with execution systems.
PPM Concept PPM Process PPM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
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